GCC - Enhanced regulations fuel concerns of weaknesses
Thursday, 09 29 2016, Category: Insurance and Reinsurance, Country: Gulf Cooperation Council
New regulations in a number of markets in the Gulf Cooperation Council (GCC) enhancing minimum capital and solvency requirements as well as incorporating actuarial based pricing and reserving have impacted profitability of many insurance companies, said AM Best.
Regulation has resulted in companies experiencing a drastic decline in operating performance and risk-adjusted capitalisation, according to the ratings agency, raising concerns surrounding the inherent weaknesses in these markets.
AM best believes that despite the immediate adverse impact, these necessary regulatory changes place the markets on the right trajectory for greater financial stability in the future.
Source: Intelligent Insurer